Five tips for buying your first home the right way
Low interest rates and a desire for more space as COVID-19 leads people to spendmore time at home are boosting demand for homeownership. According to the National Association of Realtors, home sales jumped a record 20.7% in June — over a third of which came from first-time home buyers.
If you are one of those people looking to purchase your first home, here are some tips to help you get your finances ready.
Determine your down payment and monthly housing cost. Traditionally, lenders have preferred a down payment of at least 20%. If 20% ormore is possible for your situation, it can be advantageous as you’ll likely reduce the interest you’ll pay and avoid Private Mortgage Insurance (PMI) attached to lowdown-payment loans. However, if a large down payment is not suitable for your situation, there are many low-down-payment options available, especially as a first-time buyer, including Federal Housing Administration (FHA) loans and conventional loans. But be aware that a lower down payment usually means you’ll pay a higher interest rate.
You can determine your monthly housing cost by adding the cost of your mortgage payment, taxes and homeowners insurance. You’ll want to look at the total monthly housing cost before purchasing a home to make sure it fits into your overall budget.
Get preapproved for a home loan. With preapproval in hand from a reputable mortgage company, your offer has a better chance of being accepted. Plus, you may be able to shorten the closing period since the loan approval process has been completed. Keep in mind that getting prequalified for a loan is not the same as obtaining preapproval. Prequalification is merely an estimate of how much you may be eligible to borrow based on self-reported income information — it is not a guarantee you will receive a loan. You are still required to undergo an approval process.
Approach fixer-uppers with caution. Unless you are confident the house you’re buying has been deeply discounted based on the current housing prices in your area, you may place yourself at greater financial risk if your new home requires a lot of work. Be realistic about what you can afford in terms of fix ups. If you have the time and know how to retile the bathroom, paint the living room or enhance the landscaping, a moderate fixer-upper could be worth the financial investment. Otherwise, to avoid overextending yourself, you may want to look for a home that is in good shape and will stay that way for the foreseeable future.
Limit your demands. If you want to make a compelling offer, particularly in a strong real estate market, you may want to be selective about the conditions you’re adding to your offer. An inspection contingency is smart but asking for extensive repairs may tip the scales in favor of another buyer who is less demanding.
Do your research so you’re ready to act. Buying a home can be a very emotional decision and it’s important to go into the process well prepared. Take some time to lay out your priorities and research the market. What’s most important to you long-term— resale value, location, school district, number of bedrooms? Be practical about what you can truly afford and take the time to obtain preapproval from your bank or mortgage company. When you start seriously looking, you may have to act fast if you find the perfect house for you. If you’re prepared and thoughtful at the beginning of the process, you’ll be in a better position to make the right move.
Bronwyn L. Martin is a Financial Advisor Chartered Financial Consultant with Martin’s Financial Consulting Group, a financial advisory practice of Ameriprise Financial Services Inc. in Kennett Square and Havre de Grace, Md. She specializes in feebased financial planning and asset management strategies and has been in practice for 18 years. To contact her visit www.ameripriseadvisors.com/ bronwyn.x.martin
in their yards so the young don’t have to leave their pandemic bubbles. Others are considering long sticks with hooks for candy buckets at the end, offering social distance at collection time, or long chutes to send the candy through to dressed-up recipients.
Alina Morse, a 15-yearold candy entrepreneur outside Detroit, suggests fashioning a Halloween candy tree decorated with lights and treats so kids can pluck their own from a porch or yard.
“Selecting a treat from the tree makes the safe, self-serve experience much more fun, said Alina, who heads Zolli Candy.
None of that is enough for some parents wary about going door to door with their kids, while others are willing, with care, if their areas allow it.
In Chicago’s Lincoln Park neighborhood, Jamie Bender said it all depends for her two kids, ages 3 and
5.
“If our neighbors are wearing masks when they open the door, we would let the kids trick-or-treat a few houses then do the obligatory wipe-down of candy wrappers,” she said.
Halloween is Camille Maniago’s 10th birthday. With Halloween on a Saturday, her family in Long Beach, California, was going to go big, but the pandemic put a stop to that.
“We’re not sure what we’ll do now, but it will probably involve a family costume and a small celebration with our immediate pod,” saidCamille’smother, Rachel Maniago. “I have friends who were thinking of planning Easter egg style candy hunts for their kids in their yards in costumes and finishing it with a movie night. Definitely not the same, but I think it has a festive element to it.”
While many haunted houses and events indoors or in tight spaces aren’t
happening this year, the folks at the world recordholding largest temporary corn maze in Dixon, California, are pressing on, starting Sept. 27.
At 60 acres, the maze at Cool Patch Pumpkins now has widened paths. Visitors must walk through with live-in household members only, and masks are required when social distance can’t be maintained.
On theHalloween haunts front, Brett Hays of the Haunted Attraction Association, said roughly half the attractions among his 800 or so members will not be able to run this year due to the pandemic.
“It’s so uneven in terms of regulations right now,” said Hays, the group’s president. “Whatever local agencies have been put in charge of this really are clamoring to try to get a hold of what’s going on andbe able tohandle it.”
A few haunts have already
opened, he said, “and they’re having to really stay after people to keep them distanced and to get them to keep their masks on. It’s a lot of babysitting the customers.”
A few haunts have created drive-thru experiences, an approach Hays isn’t a huge fan of, noting the potential danger of the startle reflex in drivers with their feet on gas pedals. Other attractions have gone to timed tickets. Many expect a 50 percent reduction in attendance in an industry that usually generates about $1.14 billion in annual ticket sales, primarily during Halloween season.
“Nobody’s going to have a great year,” Hays said. “There’s no doubt about it.”